2024-03-10 00:37:17 ET
Summary
- JD recently announced that it would increase its buyback program by $3 billion.
- The $3 billion announced is 7.7% of the company's market cap; the combined amount of newly authorized and pre-existing buyback space is 8.9% of market cap.
- By contrast, Apple's $90 billion buyback program is only 3.44% of the company's market cap.
- Alibaba also hiked its buyback recently.
- These moves indicate that China's government is ready to open the buyback floodgates to stimulate its economy.
In China, buybacks are moving “full speed ahead.” In its February earnings release, Alibaba ( BABA ) upped its authorized buybacks by $25 billion and committed to retiring 3% of shares per year, net of stock-based compensation (“SBC”). A month later, JD dot com came out with an earnings release of its own that included a $3 billion increase to its buyback program–about 8.9% of the company’s market cap....
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Alibaba And JD: Full Speed Ahead On Buybacks!